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“Gold reserve” of tractors sent to collective farms

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Storage areas of the Minsk Tractor Plant (MTZ) and its dealers are filled with finished goods.

Another portion of photos made at Buda-Koshelevo-Agroservice company specialising in logistical support for the agricultural sector confirms that the Minsk Tractor Plant has problems with sales. The company is a wholesale and retail distributor of trucks and tractors. Activists of the Homel branch of the electronic industry trade union took pictures of dozens of new MTZ tractors collecting dust on the territory of the company, praca-by.info writes.

“It's clear that agricultural firms of the district cannot buy this number of tractors,” leader of the Homel branch Viktar Kazlou says. “They don't have enough money. Tractors are likely to be leased. It means that MTZ will not receive hard cash and the situation will remain unstable.”

Supplies of tractors and tractor units were 550 mn dollars for 6 months this year, which is only 73.3% compared to the first half of last year. Deliveries to Venezuela significantly fell – only 3 tractors worth 140,000 dollars were sold to the country, which is 2.5% of the results of the first half of 2012. The main problem for MTZ is a decline in demand in Russia. Sales make up only 72.9% of last year's results.

The electronic industry trade union recently received photos of MTZ territory filled with unsold tractors. Workers of the plant said at a meeting with trade union leader Henadz Fiadynich that many people quit the plant due to falling wages.

MTZ Director General Uladzimir Vauchok earlier called the unwanted tractors “gold reserves” of the plant. “The tractors in the plant's storage areas are our gold reserves which, I believe, will soon be converted into money,” he said.

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